Selling
How much do I actually net after selling my home in the Bay Area?
Short answer
Net proceeds = sale price - mortgage payoff - commission (5-6%) - closing costs (~1-2%) - capital gains tax (if applicable). For an $1M sale with $400K mortgage, typical net is $510-540K before any capital gains.
Walk-through of a typical East Bay sale:
Assume $1,000,000 sale price with $400K remaining mortgage:
- Sale price: $1,000,000 - Less mortgage payoff: -$400,000 - Less total commission (5-6%): -$50,000 to -$60,000 - Less escrow + title + transfer tax: -$10,000 to -$15,000 - Less repair credits (if any): variable - Less property tax proration: ~$2,000-$5,000 - Less prepaid mortgage interest: ~$1,000-$2,000
Gross net: approximately $520,000-$540,000 before capital gains.
Capital gains (federal + California): If this is your primary residence and you've lived in it 2 of the last 5 years, the IRS exclusion is $250K single / $500K married. Anything above that is capital gains at 15-20% federal + ~9.3% California.
For inherited properties: stepped-up basis at death usually eliminates most of the gain, but Prop 19 implications on holding-as-rental vs. selling are real.
This is a generic math example. Your specific numbers depend on your remaining mortgage, your basis, your residency, and any improvements that adjust your basis.
I want to give you a complete answer, but I need to know your specifics. Reach me at (510) 504-0402, text or call 24/7 at (406) 205-9003, or email roger@grubb.net. I answer my own phone.